Attorneys in a Las Colinas developer’s $139 million breach-of-contract lawsuit against Irving gave differing interpretations Monday afternoon of a state law that puts recovery limits on suits against government agencies.

Las Colinas Group filed the suit in August after its deal to develop a $252 million entertainment center with the city expired. Las Colinas Group contends that city officials undermined the partnership and allowed the deal to dissolve, causing the company to lose $100 million in potential profit and $24 million in potential developer fees. The company also says it lost $15 million that it had invested developing the project.

State District Judge Carl Ginsberg heard only whether Las Colinas Group can recover the damages it alleges. During the short hearing, he did not indicate when he would issue an opinion and did not hear the merits of the lawsuit itself.

If Ginsberg decides the company is legally barred from suing for its requested damages, attorneys for developer Las Colinas Group could have to rethink their case.

The city accuses the company of failing to meet its obligations to produce millions in private investment that would have helped pay for the project’s construction.

Don Colleluori, an attorney for Irving, said state law allows recovery only of money already owed to a company — not consequential damages caused by ending an agreement. He said that the city has already paid the company more than $22 million for work done on the project and that Las Colinas Group isn’t arguing that the city directly owes it any more money.

“The reason they don’t do that is because they cannot do that,” he said.

Ernest Leonard, an attorney for the developer, said the statute pertaining to lawsuits against government agencies merely caps the amount someone can recover at the figure the entity was obligated to pay. He said the city was supposed to pay up to $200 million toward the project and his client’s recovery amount is below that. He also said the development agreement gave the company broad leeway to sue.

To post a comment, log into your chosen social network and then add your comment below. Your comments are subject to our Terms of Service and the privacy policy and terms of service of your social network. If you do not want to comment with a social network, please consider writing a letter to the editor.